One of the biggest causes of failure in the hot dog biz is not charging enough at your hot dog cart.

And the biggest reason for not charging enough is fear. Let’s face it, most newbie slingers are scared to death to charge a fair price for their meals.

Their self talk goes something like this…

“What if I put all this effort into starting a hot dog biz and then I don’t sell enough hot dogs? I know! I’ll set my prices so low that it will be a no brainer. People will be sure to buy from me if the price is low enough.”

The big, giant, hairy problem with this logic is that when you compete on price, you have no room for profit. Remember – our goal is not simply to sell as many hot dogs as we can. Our goal is to make as much profit as we can.

It reminds me of an old joke: Did you hear the one about the salesman who priced his goods at ten cents below cost? He planned to make it up in volume.

It’s only funny if you are telling the joke, not living it.

You can’t physically do enough sales volume to make up for crappy profit margins. You’re not McDonalds. Be glad of that by the way.

You need to be more like Ruth Chris Steakhouse. A 16 oz Ribeye is $42. No sides or drink, that’s just the meat.

You need to figure out how to sell the very best, most unique hot dog experience in town.

And charge for it, darn it!

Just so you don’t misunderstand me, I’m not talking about taking advantage of people.

I’m talking about charging a premium price that customers will be happy to pay because they love visiting your cart and eating your mouth watering addiction dogs as much as they love their own family members.

Maybe even more.

Charging premium prices ensures that you will make enough money to stay in business for years to come.

It also guarantees your customers that they will continue to be able to get the best damn hot dog in the world whenever they want it.

-Steve

P.S. Need a confidence booster? Check out these fast food meal prices:

NOTE: Any slinger worth his tongs knows that they can charge more than any fast food chain because we don’t sell a hot dog. We sell an experience! I’m listing these fast food prices just to show you how much folks will pay for low quality food and no experience at all (other than being herded like cattle).

When was the last time you heard someone say, “I ate at McDonalds today. Wow – the food was wonderful and I had so much fun there!”

You can do way better my friend! Trust me.

Here is what folks are currently paying for bad food…

Panera Grilled Cheese $6.59 with chips, no drink

Arby’s  Roast Beef (medium) $6.69 combo meal

McDonalds Quarter Pounder w/Cheese $4.79 sandwich only

Sonic (sort of) Chicago Dog  $5.19 combo meal

Sonic Single Cheeseburger $5.99 Combo

Jack in the Box Ultimate Cheeseburger $6.89 combo

Burger King Whopper $6.49 combo

What do you think, slinger? Tell me in the comments below…